Zcash

Zcash is a decentralized cryptocurrency that utilizes advanced cryptography, specifically zk-SNARKs (zero-knowledge Succinct Non-interactive Arguments of Knowledge), to provide enhanced privacy and security for transactions. Launched in October 2016, Zcash was developed by a team of cryptographers and academics from institutions like Johns Hopkins University, MIT, Tel Aviv University, and Technion. It was initially based on the Bitcoin codebase and uses the Equihash proof-of-work algorithm for mining.

Zcash introduces the concept of "shielded" and "transparent" addresses. Shielded addresses, also known as z-addresses, encrypt transaction details, including the sender, recipient, and amount, ensuring complete privacy. In contrast, transparent addresses, or t-addresses, function similarly to Bitcoin, where transactions are publicly visible on the blockchain. Users can choose between these address types for each transaction, enabling varying levels of privacy.

Zcash transactions can be categorized into four types: private (both sender and recipient use z-addresses), deshielding (sender uses z-address, recipient uses t-address), shielding (sender uses t-address, recipient uses z-address), and public (both use t-addresses). This flexibility allows users to strike a balance between privacy and transparency based on their needs.

Zcash employs a unique funding structure. Until November 2020, 80% of newly mined coins went to miners, and 20% went to the founders as a "Founders' Reward." After the first halving event in November 2020, the Founders' Reward was discontinued, and the remaining 20% is now distributed among the Major Grants Fund (8%), Electric Coin Company (7%), and Zcash Foundation (5%).